SCGP’s JV Acquires 90% Stake in Jin Zhong Fa Paper Industrial to Strengthen Competitive Edge in ASEAN

SCG Packaging Public Company Limited (SET: SCGP) said its joint venture, Thai Containers Group Company Limited (TCG), has completed the acquisition of a 90% stake in Jin Zhong Fa Paper Industrial (JZF), a fiber packaging manufacturer in Thailand, for THB68 million.

TCG is a 70:30 joint venture between SCGP and Japan’s Rengo Company Limited. JZF’s financial results will be consolidated into SCGP’s accounts from October 2026, according to the company’s disclosure to the Stock Exchange of Thailand.

JZF produces corrugated containers, primarily serving Chinese customers in Thailand’s fruit export market. The company reported revenue of THB205 million and total assets of THB240 million in fiscal 2025.

The manufacturer operates an annual production capacity of 28,000 tons at its facility in Chonburi. The location provides proximity to customers in Eastern Thailand, where the company identifies growth potential linked to foreign capital inflows.

SCGP said the transaction supports its strategy of expanding its consumer packaging business across ASEAN. The company expects the acquisition to create operational and commercial synergies, including reallocating existing fruit box orders to JZF to optimize margins and reduce logistics costs.

The move is also expected to free capacity at SCGP’s existing facilities for other orders, while JZF’s customer base could provide additional cross-selling opportunities. SCGP said JZF’s available capacity and land offer a platform for accommodating future demand.